TITLE:
The Menu-Induced Core of an Economy with an Excludable Public Good
AUTHORS:
Toshiyuki Hirai
KEYWORDS:
Menu-Induced Core, Excludable Public Good
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.4,
April
24,
2014
ABSTRACT:
This paper
introduces a core concept in an economy with an excludable public good. In the
economy, we assume that each coalition is allowed to achieve an allocation via
a menu, a kind of a nonlinear price. Our core concept is called the
menu-induced core that is defined as the set of allocations achievable by menus
that are robust against all coalitional improvements achieved via menus. We
show that the menu-induced core is nonempty. We also investigate certain
properties of the menu-induced core that show the difference between the
menu-induced core and the core defined in a standard way.